Money Laundering

1170 Words5 Pages

According to the U.S. Department of Justice, money laundering is the process by which one conceals the existence, illegal source, or illegal application of income and then disguises that income to make it appear legitimate. Money laundering involves a three step process which includes placement, layering and integration (Albrecht et al, 2009). Placement is the first step and it includes the launderer opening up an account at a bank or some other type of financial business to make deposits with the illegal money. The placement step is often looked at as the most risk taking step because the launderer does not know the reaction of the bank and how they are going to accept a large cash deposit. If the deposit is too large the bank can recognize it and this could be considered a red flag for the bank. The purpose of this step is to avoid the authorities and to remove the money as far away from the source as possible. The second step is called layering. This is where the launderer hides the money by opening up other accounts at other banks and makes transactions between these different accounts sometimes even in different countries. This makes it very hard to track the exact location of the money. The last step is the integration step. The money is finally used out into society and seems to be legal, legit money but it really came from an illegal crime. Theses launderers use the money to buy houses, cars and anything else that is expensive. Now these launderers have lots of money that they have obtained illegally (Albrecht et al, 2009). Money laundering is extremely important because it is not just a crime that was created overnight. This scheme took time and intelligence to be thought out. We are not dealing with dumb pe...
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What is Money Laundering?
Money laundering is when funds from criminal activity are converted into “clean money” and cannot be traced back to the criminal activity. The goal is to conceal the criminal activity and the criminals involved. One of the main reasons people commit criminal acts is to make money off of it. Money laundering allows criminals to enjoy these illegal proceeds without law enforcement noticing.
Money laundering can be used in drug trafficking, terrorism financing, or tax evasion

(2009), during the investigation process of money laundering, the money launderer is prosecuted if justification is found. The launderer can also be convicted and sentenced to serve time. The money that was used to commit the crime is usually confiscated after being seized by law enforcement. Investigations are usually brought about after someone has reported suspicious acts, during the detection period, such as the bank reporting large amounts of money deposits, transfers, withdrawals and purchases

This paper explores the reasons for illegal drug use, prostitution, and money laundering. It establishes that the most common reasons for all three offenses are poverty, family related issues as well as lack of positive perspective. Current policies, procedures, and programs in place to combat these public order offenses as well as their shortcomings are explained. It establishes that drug education and treatment programs lack transforming capabilities, that prostitution is oftentimes ignored and

Money Laundering
In a recent movie Mickey Blue Eyes, there is a comical scene in which an unknown artist’s painting is sold to a buyer for $50,000. It seems as though a restaurant owner owed the mafia a large sum of money and he paid them by bidding an absurd amount of money for a horrid painting. The movie made this scene seem quite innocent and funny (See Appendix 1 for more examples). Unfortunately money laundering is a serious crime that is still prevalent in the United States and other

According to Hopton (2009), money laundering tends to allocate dirty money around the world on the basis of avoiding national controls and therefore tainted money tends to flow to countries with less stringent controls. Money laundering has a major affect on the businesses that were used for the crime. The integrity of the bank and their financial services are depended heavily on professionalism and ethical standards. A reputation of integrity is one of the most valuable assets of any financial

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities such as drug trafficking, prostitution rings, illegal arms sales, and various other things. Unfortunately money laundering is a serious crime that is still prevalent in the United States and other countries. The Russian mafia, the Triad or Chinese mafia, and the Columbian drug cartel are just a few of the groups that partake in money laundering

Money laundering, as the name suggests, is the act of making unreported or money or income appear as if the money has been earned through legal acquisition. It could take just one transaction or several processes, depending on the amount and the origin of the money, for the money to be complete laundered. In its simplest forms, people with huge sums of money earned by illegal means can walk up to a bank and deposit their money. However, this method easily raises suspicion in most countries. The

Assignment
Money Laundering
The word money laundering, according to the myth, is derived from Al Capone's practice of using a string of coin-operated launderettes in Chicago to disguise his revenues from gambling, prostitution and protection rackets. It's a nice story but not true, money laundering is so called because it perfectly describes the process of removing the stains and smells which money acquires when criminals earn it.
In this report I will go on to discuss the topic of money laundering

specific area of money laundering in Colombia. The database will be evaluated under the scope of its Authority, Accuracy, Objectivity, Currency, and Coverage.
First of all, it is important to highlight that Colombia plays a particular role in the chain of money laundering globally. Colombia has been classified by many as the main producer and exporter of cocaine in the world ; in consequence, it should be expected to find generous literature and articles regarding money laundering which support this

“Money laundering”, is a term that is often used in association with illegal activities, especially in terms of terrorist actions. Many news reports in televisions and newspapers have used the term money laundering but still, the general public do not have enough knowledge of what money laundering is and the corresponding effects upon society. In line with this, there is also a need to further study the processes that are involved in money laundering in order to properly address the aforementioned